Andrew Williams Posted March 21, 2014 Report Share Posted March 21, 2014 In the recent UK Budget one of the momentous Chancellor announcements is that from April next year anyone aged 55 or over will be able to take their entire pension fund as cash – although only the first 25 per cent will be tax-free. The remaining 75 per cent of the fund would be taxed at the saver’s marginal rate. Read here: http://www.moneymarketing.co.uk/news...008135.article Watch here: http://www.bbc.com/news/uk-politics-26650855 This is actually already in play in Australia in that when someone reaches the age at which they are able to access their Superannuation up to 100% can be taken as cash and in most cases tax-free (which does differ from the new UK change announced). Kind regards Andy Quote Link to comment Share on other sites More sharing options...
Give me a break! Posted March 21, 2014 Report Share Posted March 21, 2014 Is this State pension or company pension? Quote Link to comment Share on other sites More sharing options...
elfie Posted March 21, 2014 Report Share Posted March 21, 2014 My guess its private pension cant see the UK government letting go of all the state pension cash country be bankrupt Quote Link to comment Share on other sites More sharing options...
Andrew Williams Posted March 24, 2014 Author Report Share Posted March 24, 2014 Yes private and it seems that the proposal is in relation to Defined Contribution (DC) Schemes (market linked) not Defined Benefit (DB) Schemes (final salary). Regards Andy Quote Link to comment Share on other sites More sharing options...
Andrew Williams Posted March 28, 2014 Author Report Share Posted March 28, 2014 (edited) Just an update on this and of particular interest is the proposition to remove the option to transfer from a public service defined benefit scheme i.e final salary to a defined contribution scheme, except in very limited circumstances! This could mean that inability to transfer the likes of NHS and Police Pensions and potentially private final salary schemes to Australia from that point. However there is a government consultation on this due on June 11 2014 and my own personal opinion is that a person moving overseas might fall into the category of a very limited circumstance. It has come to my attention that many transfer companies are jumping on this and scaremongering people into transferring on the basis of you must act now – one company with a headline “Lights out for UK Pension Transfers” My advice is not to act on this and transfer on this basis, certainly if a transfer is of interest then seek advice but not on the basis of not being able to transfer in the future. For this we must wait until the consultation in June, as always I will keep you posted. Kind regards Andy Edited March 29, 2014 by Andrew Williams Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.